The implementation of Bitcoin and other early cryptocurrencies is often regarded as Blockchain 1.0 due to its rudimentary nature. When Ethereum pioneered smart contracts and Blockchain-as-a-Service, many viewed this as a sufficiently advanced step forward to be deemed Blockchain 2.0. Under the umbrella of Blockchain 2.0, we often read about improvements to scalability and the use of multiple consensus algorithms such as PoW and PoS. Then, what is the next step after Ethereum?
Given the progress made by the industry so far, Directed Acyclic Graph (DAG) projects seem to have the greatest potential in delivering the next era of Distributed Ledger Technology (DLT). From IOTA to MIXIN, DAG projects have proven to be highly popular among developers as well as traders.
What is DAG?
DAG, which stands for Directed Acyclic Graph, is different from the chain structure of BTC. A DAG structure consists of multiple routes which have the same direction (directed); and will never loop back to where the route starts (acyclic). For example, from the single starting point, data points can be linked linearly to each other while no future data will ever link back to the beginning. One transaction confirms the next. There is no longer need for a Proof of Work confirmation on every transaction.
The sequential structure of blockchain is the biggest issue when it comes to the speed at which materials travel through the network. Also, blockchains have to add nodes as they grow in size, leading to data storage problems. DAG operates like a flow chart, where all points of data travel in the same direction. The miner becomes the node, who verifies the two closest transactions. And the fee for processing a transaction becomes zero.
SmartX is a DAG project that uses proprietary algorithms that give it blockchain-like properties, it is thus referred to as Block-DAG. SmartX has strong and unique advantages over existing projects, and will be exploring social entertainment as an initial use case. The project plans to link social entertainment service providers and users around the world, thanks to the SmartX team’s extensive background working at companies such as Tencent and WeChat.
In a nutshell, SmartX wishes to build a decentralized social entertainment platform with a built-in payment method using digital currency. A simple analogy would be that SmartX aims to be a B-DAG platform equivalent to the combination of Tencent and Alipay.
SmartX is a decentralized, minable BlockDAG project, which is essentially equivalent to a traditional blockchain system that can achieve limitless horizontal expansion. With its proprietary B-DAG technology, the system is able to integrate the transactions after they are generated.
SmartX is unique in:
1. High TPS with the unlimited potential of performance improvement
SmartX is innovating how traditional blockchain can be combined with DAG technology. By linearly linking every transaction generated on the platform as blocks, and with the presence of a mainchain created by the master nodes, SmartX combines the advantages of blockchain and DAG. It is, therefore, able to realize high TPS without sacrificing security. Additionally, SmartX allows more nodes to join the network increasing speed and scalability.
2. Low transaction cost
Transaction cost is another issue that has haunted BTC and ETH for long. With unstable and usually high transaction cost, users’ willingness to use the network will be discouraged. SmartX, on the other hand, promises low transaction cost which is made possible by enabling high-frequency simultaneous transactions.
3. Consensus mechanism: POW+POS
SmartX is using POW+POS, instead of just POW. By doing this, SmartX is able to take advantage of both types of consensus mechanism. Every node participating in SmartX’s network will have to make a pledge and ensure that it has enough bandwidth and capacity to support the network.
Safety issues are a major disadvantage for DAG projects when comparing them with traditional blockchain projects. SmartX has bettered its design and algorithm to defend itself from various threats:
- Time Hijack: avoids using timestamps in the implementation and design of the algorithm. SmartX will use a mechanism which is similar to Swarm to vote on the current block-output cycle. If the received MC is in a cycle that is too far away from the current cycle of the network, this block will be discarded.
- Sybil Attack: to address the security threats from malicious nodes or node failures, senders of the message will be required to sign every message with his/her private key. Each public key can only submit one block in a block-output cycle. If there is repeated submission, the block that received the first will be recognized, and the rest of the blocks will be ignored. If verification fails, the block issued by this public key will be discarded.
SmartX uses proprietary Blockchain-DAG technology to achieve decentralization, optimized handling capacity and delay validation at the same time. SmartX is improving the security of the DAG model to defend against time hijacks and sybil attacks. With a clearly defined goal and the proprietary B-DAG technology, SmartX will soon prove itself.
SmartX uses a proprietary algorithm known as Block-DAG to dramatically improve the security and scalability of existing DAG architecture. It employs a unique algorithm guaranteeing high throughput and reliability due to a combination of Proof of Work and Proof of Stake concepts. With its first use case in social entertainment, SmartX will link service providers and users around the world, acting as a gateway to build a trustworthy and secure ecosystem.
- Telegram Channel: https://t.me/smartx_en
- Website: http://smartx.one
- Twitter: https://twitter.com/SmartXOne
- Reddit: https://www.reddit.com/r/Smartxone/
- BitcoinTalk: https://bitcointalk.org/index.php?topic=5164757.msg51805131